Why is it so hard to “save” for an Emergency Fund! Emergency Funds are funds that you are supposed to set aside with the intent that this fund will solely be touched if and when an occurrence that is not anticipated or that is an emergency in nature happens and affects your financial assets or liquidity.
However, it’s pretty hard to save an entire year’s or 6 months of your expenses for that matter. More so, if you’re saving small amounts over a long period of time. For instance, if your monthly expenses on average amount to Sh. 80,000, you will need about Sh. 480,000 minimum for your emergency fund.
Assuming you save Sh. 10,000 only towards this fund, you will manage to accumulate that figure in about 48 months – assuming it’s a non interest earning account. The likelihood of something happening within these 4 years and causing you to withdraw this money is quite high. It is usually at the point of intentionality that you understand the meaning of saving for Emergency Funds.
Our subconscious mind is very powerful and if your engage it when setting goals, you’re more likely to avoid obstructing financial processes that you start. Otherwise, setting up an Emergency Fund will remain just another thing you do just because you hear a lot from financial coaches that it is one of the basic things to do when planning your finances.
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Many a times, you’ll do it but never ever accomplish that goal, mainly because you haven’t fed your subconscious mind about the intent. Being intentional means making deliberate choices that will reflect what is most important to us.
Goals move us and goals shape us. Set goals that are directly in line with your defined purpose. By their very nature, they will introduce intentionality into your life. When intentional with your resources, you’re more likely to accomplish your goals. Some goals are hard to achieve and even maintain them once achieved.
An Emergency Fund is just one of those goals. Why? Because mostly, it’s money saved in very liquid forms and that is easily accessible. But with intent, you can achieve it. Some things are hard but it doesn’t mean that they are impossible. With good intent, they can be achieved.
Rhina Namsia is the founder of The Acemt Consulting, a training and consultation company that provides financial planning and investment advisory.
